South Stream gas pipeline: European endpoint in Austria

Up to 32 bcm/year of Russian gas to be delivered
to Baumgarten/Austria

First gas expected 2017, full gas deliveries
expected January 2018

Today at the headquarters of OAO Gazprom a working meeting
has been held between the Chairman of the Management Committee
Alexey Miller and the OMV Chairman of the Executive Board, CEO
Gerhard Roiss.

During the meeting a Memorandum of Understanding on the
implementation of the Austrian section of the South Stream gas
pipeline was signed. The Memorandum sets forth the intentions
of the parties to implement the project of construction of the
Austrian section of the South Stream gas pipeline with the
capacity of up to 32 bcm/year and its end point in Baumgarten
(coming from the Black-Sea coastline of Bulgaria, crossing
Serbia, Hungary and ending in Austria). All the permits
necessary for the construction are planned to be obtained by
the end of 2015, first gas deliveries are expected in 2017 and
full commissioning of the Austrian section of the gas pipeline
is scheduled by January 2018.

"The need for construction and the benefits of South Stream
Project for Europe are patent. South Stream Project is aimed at
enhancing energy security of the European consumers, which has
always been regarded as the top priority for ОАО Gazprom. It is
noteworthy that Gazprom and OMV have already established a
solid international law basis for the implementation of this
project – an intergovernmental agreement between Russia
and Austria signed in April 2010", so Alexey Miller.

In his turn, OMV CEO Gerhard Roiss stated: "This is an
important step to significantly increase Austria’s security of
gas supply and will further strengthen Baumgarten’s role as key
hub for gas in Central and Eastern Europe. Our nearly 50 years
lasting partnership with Gazprom has contributed to this
successful step in further diversifying Europe’s energy supply
routes."

Gerhard Roiss also handed a letter from Minister of Economy
of the Republic of Austria Reinhold Mitterlehner to Alexey
Miller, in which Mr Mitterlehner expresses support for the
efforts of the parties on the implementation of the South
Stream Project on the Austrian territory.

The Memorandum also addresses a participation by Gazprom in
the Central European Gas Hub (“CEGH”) and provisions of storage
capacities by OMV for Gazprom in Austria thus to further
enhance the security of supply in Austria.